Keep M Flying Is a Wholesaler That Stocks Engine Components

question 55

Multiple Choice

Keep M Flying is a wholesaler that stocks engine components and test equipment for the commercial aircraft industry.A new customer has placed an order for eight high-bypass turbine engines,which increase fuel economy.The variable cost is $1.7 million per unit,and the credit price is $2.1 million each.Credit is extended for one period.Based on historical experience,payment for about 1 out of every 240 such orders is never collected.The required return is 3.2 percent per period.What is the NPV per unit if this is a one-time order?

• A)$316,407
• B)$321,819
• C)$326,405
• D)$334,290
• E)$351,056

---

Definitions:

Language Deficits

Impairments or deficits in the ability to use or comprehend spoken, written, or other language symbols.

Brain Abnormalities

Structural or functional deviations in the brain that affect normal brain operation.

Gender Differences

Variations in the characteristics, behavior, physical and psychological traits, and social structures between males and females.

Anhedonia

The incapacity to experience enjoyment in activities that typically bring pleasure.